2018 UEM Edgenta Annual Report

CFO’S REVIEW MUHAMMAD NOOR BIN ABD AZIZ @ HASHIM Chief Financial Officer UEM EDGENTA CLOSED THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (“FY2018”) WITH REVENUE FROM CONTINUING OPERATIONS AT RM2.18 BILLION, REFLECTING A GROWTH OF 3.3% FROM THE PREVIOUS FINANCIAL YEAR. THISWAS GENERALLY ATTRIBUTED TO NEWBUSINESS WINSWHICH CONSIST OF ENVIRONMENTAL AND PORTERING SERVICES FOR VARIOUS HOSPITALS IN SINGAPORE AND TAIWAN, GENERAL FACILITYMANAGEMENT & ENERGY PERFORMANCE CONTRACTING FOR NEWCLIENTS AND PAVEMENT DESIGN& BUILD WITH PLUS. Profit After Tax (“PAT”) from continuing operations grew by 21.8% fromRM125.1million to RM152.4million, contributed by the higher revenue achieved, savings from interest expenses arising from loan settlements in FY2017 and increased profitability in the Healthcare Support division. Consistent with the performance in previous years, Healthcare Support and Infrastructure Services divisions remained the largest contributors at 45% and 41% of full-year revenue respectively. InfrastructureServices Property&FacilitySolutions AssetConsultancy HealthcareSupport Revenue** (RM Million) EBITDA** (RM Million) PAT** (RM Million) 904.2 (42%) * 984.6 (45%) 114.1 (5%) 189.4 (9%) 882.0 (41%) 180.9 (9%) 159.1(8%) 862.3 (41%) 107.8 (39%) 121.8 (46%) 11.6 (4%) 19.3 (7%) 115.9 (43%) 33.2 (12%) 19.1 (7%) 117.3 (42%) 80.7 (41%) 86.5 (45%) 7.7 (4%) 16.7 (9%) 82.0 (42%) 24.3 (12%) 11.1 (5%) 82.5 (42%) FY2017 FY2018 * Includes MFRS15 prior year adjustment of RM8.2 million ** Continuing operations only, exclude property development, intercompany revenue and others Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 72